Reliance Communications has reported net profits (consolidated) of Rs. 1530.8 crores, up 1.2 percent since the last quarter. Total revenues (consolidated) for the quarter were Rs. 5645 crores up 6.07 percent quarter on quarter, while EBITDA (consolidated) grew by 2.28 percent quarter on quarter to Rs. 2301.6 crores. Reliance currently offers CDMA services in 20 service areas, and GSM services in 8 circles. They intend to expand GSM services to 14 circles by the end of the calendar year 2008. VAS Revenues & ARPU As per our calculations, RCom's VAS revenues were flat, growing by just 1.89% quarter on quarter to Rs. 110.8 crores/month from Rs. 108.81 crores/month. At the same time, ARPU declined for the quarter, to 271 from 282. With around 5.7 million subscribers added in the quarter, VAS APRU and contribution of Non-SMS VAS services declined. The overall Non SMS VAS revenues also increased by just 1.11% to Rs. 92.64 crores a month. It does appear that the new subscribers on RCom's networks are not contributing significantly to VAS revenues. Do bear in mind that in case of RCom, Non-SMS VAS, like Voice, Internet (WAP), Gaming, Music (Ring-Back Tones) etc, contribute as much as 83.56% to VAS ARPU, and their SMS revenues are rather low. Subscriber Addition, Minutes Of Use & Churn RCom's Wireless subscriber base was up 12% quarter on quarter to 56,045,885 from 50,772,888. Net subscriber additions were up to 5,272,997 from 4,979,212 last quarter. 99.1 percent of the new additions were prepaid, and they…
